In today’s briefing:
- Will Substantive Reforms to Governance Be Postponed Again This Time for Building a Track Record?
Will Substantive Reforms to Governance Be Postponed Again This Time for Building a Track Record?
- Transitioning to company with audit and supervisory committee is neutral for governance improvement, but the reason governance improvement hasn’t decisively improved is that few companies adopt the US-type 3-committee structure.
- Currently, discussions are underway on company with US type 3 Committees, specifically the proposal that “only when outside directors constitute majority, shall the authority to determine nominations reside with theBOD.”
- This resembles the situation when companies established audit committees prioritized demonstrating improvements in corporate governance over substantive enhancements to corporate governance itself.
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